Tag Archives: Commercial

New Reporting Tool from Realogic Analytics Streamlines Analysis, Lending and Securitization of Commercial Real Estate

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Chicago, IL (PRWEB) October 23, 2008

Recently released Realogic Tools from real estate consultant and software developer Realogic Analytics gives commercial real estate owners, buyers, and lenders an additional instrument for analyzing and managing assets.

Realogic Tools merges the wealth of Argus data with the power and ease of Excel, seamlessly extracting Argus data into an Excel-based reporting and calculation engine. This allows for comprehensive analysis, valuation, lending and securitization of commercial real estate.

By combining the functions of both Argus and Excel, Realogic Tools makes critical information available immediately to buyers, lenders, asset managers, and acquisition teams so properties can be quickly analyzed and valuated.

Some key features include:

Commercial Real Estate: A Rose Among Thorns? John B. Levy & Company Finds Few Positives Budding in Today’s Commercial Real Estate Market

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Richmond, VA (PRWEB) April 19, 2009

Conditions that scorched the commercial real estate market in fourth quarter 2008 showed no signs of abating in January and February of 2009, dashing hopes among developers and investors alike that there might be an uptick in sales and refinancing activity in the new year. Market watchers in the crowd longing for the days of 2007 discovered the disappointment of looking at the world through rose-colored glasses.

“Every Thorn Has Its Rose” is the latest in a series of timely, informative podcasts produced by John B. Levy & Company, and it provides clients and analysts with a sobering vision of what they can expect in today’s commercial real estate market. This new podcast is available online at http://www.jblevyco.com.

“Any hint of rosy optimism has been overrun with thorns,” says John Levy, founder of John B. Levy & Company. “Most real estate owners, developers, and investors are beginning to realize that commercial real estate isn’t going to recover in 2009, and probably not in 2010.” He adds, “we’re looking toward 2011.”

Levy offers a couple reasons for his assessment. First, of the top one hundred largest markets in the United States, ninety are still showing job losses, indicating that the current recession is both deep and wide. Jobs drive the demand for multifamily housing, and they create the need for retail and office space. In addition, commercial real estate is a lagging, not leading sector.

“When the subprime financial market was going over Niagara Falls backward in a canoe in 2007,” Levy says, “those of us in the commercial sector were doing just fine. That said, we shouldn’t expect commercial real estate to lead us out of this recession.”

While it’s difficult to be optimistic about today’s market, Levy says there is a rose among the thorns, but it is in the budding stage. First, the federal government is pushing massive liquidity into the commercial real estate market via TARP and TALF, and these programs are starting to show promise. For example, spreads on commercial mortgage backed securities (CMBS) have tightened more than 500 basis points. Levy also believes we might see the rebirth of CMBS securitization by the end of the year, and the prospect of rejoining securitization and commercial real estate is a huge step in the right direction.

“In the meantime,” Levy says, “the biggest problem owners and developers face today is that their loans are maturing and they lack financing opportunities. Almost $ 300 billion in commercial real estate loans is coming due in 2009, and more than $ 200 billion comes from bank loans. This situation creates a major challenge.”

Levy suggests that owners and developers hire experts to assemble a financial package and help with strategy and negotiations. He also recommends that those with properties suffering from negative cash flow avoid using personal cash to keep the note current. Instead, that cash can be used as a principal payment or as additional collateral for negotiations and loan extensions.

Finally, Levy suggests, those with a CMBS loan should ask in writing – not over the phone – for their loan to be transferred from the master servicer to the special service. This strategy is helpful because only the special servicer can extend the loan or offer forbearance.

“Now is not a good time to be out there all alone,” Levy says. “We’re in uncharted waters right now, and a lot of owners and developers need help. This market is dicey.”

Firm Background

John B. Levy & Company, Inc. is a real estate investment-banking firm headquartered in Richmond, Virginia. Since John Levy founded the company in 1995, the firm has structured over $ 3.5 billion in financing for developers and owners of commercial and multi-family projects nationwide, often investing its own proprietary funds into transactions with its clients. Mr. Levy is an expert on commercial real estate financing and the effects of interest rates on commercial real estate markets. He is the originator and author of the Barron’s/John B. Levy & Company National Mortgage Survey, a monthly survey of more than 30 of the country’s largest institutional investors, as well as buyers and sellers of commercial mortgage-backed securities, which Barron’s published for over 23 years. Mr. Levy is also co-creator of The Giliberto-Levy Commercial Mortgage Performance Index (sm), the first and pre-eminent index to measure and analyze the performance of investments in the commercial mortgage industry. Additionally, he is a member of the Board of Directors of Anthracite Capital Inc. (NYSE: AHR), a New York Stock Exchange REIT managed by BlackRock, Inc and a former director of Value Property Trust.

For more information about John B. Levy & Company, please visit the firm’s website at http://www.jblevyco.com or call Andrew Little at 804-644-2000, extension 260.

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Commercial Real Estate: Not Sick, But Not Well — Investors, Developers Await Final Diagnosis of Today’s Commercial Real Estate Market

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Richmond, VA (PRWEB) June 9, 2009 –

Sick? Well? On the road to recovery? The diagnosis is still out on the state of today’s commercial real estate market, according to “I’m Not Sick, But I’m Not Well,” the latest in a series of timely, informative podcasts produced by John B. Levy & Company. This new podcast, which is available online at http://www.jblevyco.com, provides clients and analysts with clear understanding of what they can expect in today’s market.

Sentiment among investors and developers about the outlook for commercial real estate is mixed. On the positive side, the stock market has trended up nearly ten percent since April, and along the way, government loan programs have begun to work. But as previous podcasts from John B. Levy & Company have emphasized, commercial real estate is a lagging indicator. It’s unclear whether the market has hit bottom. And even if it has, there are no signs that conditions are improving, even modestly.

“There’s no doubt about it. We are in the throes of a violent deleveraging,” says John Levy, founder of John B. Levy & Company. “Most of us – and I’m speaking for myself, too – have never seen anything like these current conditions. By the time this is all over, values will have declined some 25 to 40 percent from their peak.”

Having experienced the deleveraging and suffered the loss of value, real estate investment trusts (REITs) are now raising new capital at a frenetic pace. In the past couple months alone, more than three dozen REITs have raised over $ 12 billion. As all this takes place, private developers wait on the sidelines, hoping that values recover quickly.

“I hate to say it, but ‘hope’ is not a business strategy,” says Levy. “What’s happening right now reminds me eerily of what happened in the early ’90s. REITs raised new equity long before private developers determined they should do the same.”

As for the debt side of the commercial real estate equation, there have been no new securitizations since the beginning of 2009. What the market is experiencing is an exceedingly high demand for loan extensions from borrowers who can’t find replacement debt.

“CMBS servers are facing a tsunami wave of loan extensions for maturity defaults,” says Levy, “and most are for six months to a year. By the end of 2009, we expect to see extensions as long as three years, perhaps even five.”

Borrowers need to know that there’s a difference between getting a loan extension from a CMBS server and a bank or life insurance company. A CMBS loan extension requires specific processes and procedures, which makes it important that borrowers work with an experienced mortgage or investment banker. Not doing so puts them at a distinct disadvantage.

“Can borrowers who are requesting loan extensions do so without an experienced mortgage or investment banker? Yes,” says Levy. “But that’s not what we recommend. It’s like going to court without a lawyer. Sure, it might be cheaper but only in the short run.”

Firm Background

John B. Levy & Company, Inc. is a real estate investment-banking firm headquartered in Richmond, Virginia. Since John Levy founded the company in 1995, the firm has structured over $ 3.5 billion in financing for developers and owners of commercial and multi-family projects nationwide, often investing its own proprietary funds into transactions with its clients. Mr. Levy is an expert on commercial real estate financing and the effects of interest rates on commercial real estate markets. He is the originator and author of the Barron’s/John B. Levy & Company National Mortgage Survey, a monthly survey of more than 30 of the country’s largest institutional investors, as well as buyers and sellers of commercial mortgage-backed securities, which Barron’s published for over 23 years. Mr. Levy is also co-creator of The Giliberto-Levy Commercial Mortgage Performance Index (sm), the first and pre-eminent index to measure and analyze the performance of investments in the commercial mortgage industry. Additionally, he is a member of the Board of Directors of Anthracite Capital Inc. (NYSE: AHR), a New York Stock Exchange REIT managed by BlackRock, Inc and a former director of Value Property Trust.

For more information about John B. Levy & Company, please visit the firm’s website at http://www.jblevyco.com or call John Levy at 804-644-2000, extension 237. You may also follow us on Twitter at http://twitter.com/jblevyco.

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R.O.I. Properties Specializes in Helping Commercial Real Estate Investors Buy Bulk REO Properties in Arizona

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Phoenix, AZ (PRWEB) October 2, 2009

R.O.I. Properties, a Phoenix-based real estate firm, specializes in helping commercial real estate investors buy bulk REO properties in Arizona. Buying bulk REO properties creates an enormous opportunity for both the small and large investor.

“Buying REO properties in bulk provides investors with the ability to purchase REO properties at a fraction of the cost in an environment where they could not get anywhere close to the terms and pricing they want on their own,” said Beth Jo Zeitzer, President / Designated Broker of R.O.I. Properties. “We specialize in helping commercial investors meet their needs and avoid the hassles involved in the bulk buying process.”

The size and capitalization of a group brings tremendous credibility to the table since the group can provide multiple exit strategies for the properties. Buyers can invest in REO properties without the hassles of going to auctions, contacting banks, probate sales, estate sales, etc.

According to real estate expert Robert Kline of RW Kline, LLC, there are many advantages associated with investing in commercial real estate in bulk. The first is that preventing retail foreclosures benefits the tenants and their business. The foreclosure process takes months and can result in temporary maintenance, security and insurance problems while the property changes hands. Secondly, the government does not have formal help for commercial loan modifications, although there is money from the Troubled Asset Relief Program to offset losses from bad commercial loans. In addition, the national commercial mortgage debt currently exceeds 3.5 trillion dollars, and two-thirds of securitized mortgages due today have no hope of being repaid in the near term.

Over the past 8 months, from January 1, 2009 to September 1, 2009, there have been a total of 352 commercial REO sales transactions for a total of over $ 1 billion. That is a more than 30% decline over the same 8-month period in 2008, when the transactions resulted in a sales volume of more than $ 1.4 billion (Costar).

For more information about real estate investment opportunities related to bulk REO properties in Arizona, visit ROIPropertiesAZ.com.

About R.O.I. Properties

R.O.I. Properties is a full service real estate brokerage firm specializing in foreclosure properties in Arizona, bankruptcies, probate properties and more. R.O.I. works with banks, lenders, asset managers, bankruptcy attorneys, receivers, fiduciaries and turn around professionals to sell their distressed real estate assets, both residential and commercial.

Contributing Writer: Marcela Houser

Marcela Houser, CCIM, is part of R.O.I. Properties’ Commercial Distressed Assets Division. Marcela has been working in commercial real estate for eight years, with a specialization in retail and office leasing and sales. She is bilingual, and brings a wealth of experience in facilitating transactions with users, owners and investors.

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Bluestone Americas CEO, Charles Nam, Announces the Opening of Bluestone Holdings as its Commercial Real Estate Brokerage Unit

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Los Angeles, CA (PRWEB) March 10, 2010

Charles Nam is proud to introduce the newest subsidiary of Bluestone Americas companies – Bluestone Holdings. Charles Nam will head the company branch alongside William Soady, President of Bluestone America.

Commercial real estate has been experiencing a deep corrective phase, which has been catastrophic to some, yet beneficial to others. I am pleased to be able to provide our clients with enough diversification in the segments of our company. Given their particular needs, Bluestone can offer our clients several options and we can address their requests under the same company philosophy theyve come to know and trust for years. Over the years, Bluestone has not only gained long-term clients, but have become their trusted source, says Charles Nam, CEO.

Bluestone Holdings is a licensed real estate firm in California that provides brokerage services for all classifications of commercial, gaming, office, hospitality and professional properties. Bluestone has found new directions for secure funding alternatives during this period of market correction while making a positive impact resulting in growth for the current economy.

Commercial real estate has been stuck in a neutral position since the recession began. With banks unwilling to lend the funds for investors to participate, the need for alternative resources to buy or sell property will become a reality this year as prices begin to bottom out, said William Soady.

About Bluestone America

Bluestone America is a conglomerate of United States and offshore-based corporations whose focus is asset management, asset based project securitization funding and acquisition of alternative funds. The members of the management and advisory boards of the Bluestone Group of Companies have broad based expertise in financial business development and banking in the Middle East, United States, South Korea, Brazil, Taiwan, Hong Kong, China and other key international financial and business centers.

Bluestones management and advisory board members are multi-cultural representing Asia, South America, North America, Africa and the Middle East. Bluestone America has developed various methods of securitizing asset based long-term real estate development projects using Non-Correlated Longevity Assets. These methods and techniques are proprietary intellectual properties developed and owned by Bluestone America.

For more information on Bluestone America:

Info(at)BluestoneAmericaInc(dot)com

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MBA Commercial Inc. is Now Offering Commercial Real Estate Bridge Loans

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San Diego, CA (PRWEB) June 24, 2010 –

MBA Commercial, Inc. is pleased to announce commercial real estate bridge loans and other short-term financing through its relationships with several lenders.

MBA Commercial provides commercial real estate bridge loan financing for the purchase of either performing or non-performing mortgages, the purchase of real estate assets and loan pools, and participating equity and debt mortgages. Borrowers may acquire vacant or partially leased buildings, as well as condominium sales with release prices and prepayment options. Finally, financing is available for the repurchase of discounted debt by an owner, for example, permitting an owher to short pay an existing mortgage.

According to MBA Commercial CEO Brian Yui, “MBA Commercial’s access to bridge and other short-term loans may help some commercial property owners ride out the storm, while enabling others to participate in the lucrative investment opportunities presented in the current market.”

In addition to its varied loan types, MBA Commercial is able to generate short-term financing solutions on a quick turnaround basis. In many cases, same week financing is possible with a complete loan package. Loan size can range from $ 3M to $ 300M, typically financing up to 65% of acquisition costs. With cross-collateralization of other assets, the loan to value ratio may be higher. Terms vary, with points from 3%-6% and interest rates from 12%-18% depending upon the securitization.

As MBA Commercial, Inc. predicted in late 2009, the wave of commercial foreclosures in San Diego is increasing. Research firm Real Capital Analytics Inc. reported that at the end of March 2010, San Diego County had 120 commercial loans in delinquent or default status, with a total value of $ 1.8 billion. According to Bloomberg L.P., in the first quarter of the year, 24.9% of San Diego’s commercial mortgage backed securities loans were on watch lists as lenders anticipated near-term delinquencies. In light of these and other data indicating growing distress, MBA Commercial is pleased to bring short-term financing solutions to the market at this critical time.

MBA Commercial, Inc. is a leader in San Diego commercial real estate. MBA Commercial offers a turn-key service for property management, leasing, sales and financing. Its new Bridge Loan Division provides short-term financing solutions for real estate investors thoughout the United States. MBA Commercial’s bridge loan division can be reached at 888-248-6222.

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Salvaging the Economy Commercial Loan Restructuring

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Clearwater, FL (Vocus) July 23, 2010

As the economy stumbles along, Guardian Solutions has become inundated by large numbers of business owners with income producing commercial properties that require loan restructuring to keep their doors open.

The U.S. unemployment rate is nearly 10% according to official government statistics, but what the government fails to clarify is that these numbers do not represent individuals who are not eligible for unemployment benefits and part-time workers who would prefer to be full-time. In reality, with those factors considered, true unemployment in the U.S. is closer to 17%.

With the unemployment rate as high as it is, the last thing this country needs right now is a slew of securitized commercial property foreclosures on businesses that are employing people, said Jeramie Concklin, CEO of Guardian Solutions, a commercial loan restructuring firm that has been helping its clients avoid reaching the foreclosure stage and helping them return back into income-producing assts.

Now add to this already dismal economic situation the fact that commercial real estate industry analysts expect delinquency rates leading to foreclosures to increase further through this year and to peak in late 2011, early 2012. Moreover, Deutsche Bank estimates that around $ 2 trillion in commercial mortgages are expected to come due within the next four years.

Short of a loan restructuring, commercial property-owners may suffer the consequences of losing their income-producing asset, which subsequently will produce even more unwanted repercussions on the economy. Lending institutions will feel the effects severely if they have nonproducing assets in a market flooded with foreclosed properties, adding to even further illiquidity in the credit markets.

The logical solution is for banks and commercial borrowers to agree on a mutually beneficial modification or restructure. There are various restructuring methods a bank can take. One way is for banks to decrease their rates permanently or temporarily, which can help borrowers avoid foreclosure. A fractional drop in interest rate may eliminate tens of thousands of dollars from a property-owners annual debt burden, and potentially, save hundreds of thousands if not millions for the lending institutions because now the property in question has avoided foreclosure.

The point is to give borrowers the time and the tools necessary to stabilize the property and turn it back into a positive-cash-flow business. Doing this allows the lending institution to book the property as a Performing Asset. Another scenario is how to effectively deal with the maturation of a loan. Banks might need to extend the maturity dates on loans to push back untenable balloon payments and keep the borrower in business. By doing this, the bank is ensuring the property continues to be a performing asset, not a liability that potentially needs to be sold at auction for an amount below the existing Note.

Because of the technical and legal aspects involved with restructuring a commercial loan, many property-owners may ignore their position and accept foreclosure rather than work proactively to save their investment. Commercial loan-restructuring companies exist, however, and at times can help stressed property-owners navigate the complex procedures, negotiations and nuances associated with a successful loan workout.

Concklin added, Guardian Solutions addresses each property we represent individually in accordance with all the issues at hand. Once we are prepared with every piece of relevant information and a realistic game plan, we enter negotiations with the Special Servicer, or in some cases the Master Servicer. Our intent is to always secure the best possible terms for the client while simultaneously addressing the concerns of the lending institutions

About Guardian Solutions:

Guardian Solutions is the one of nations largest commercial loan restructuring companies and is committed to helping commercial property owners save their properties. The companys seasoned team is experienced in a variety of disciplines and able to provide customized restructuring solutions. For more information, visit http://www.GuardianSolutions.org.

Contact:

Jamie Sene

Vice President, Marketing

Guardian Solutions

727-442-8833

jvs(at)guardiansolutions(dot)org

http://www.GuardianSolutions.org

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Commercial Real Estate Has the Hotel Sector Begun Turning Around?

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Clearwater, FL (Vocus) July 26, 2010

Data from Smith Travel Research released recently shows U.S. hotel occupancy rose more than two percentage points in the first five months of this year from the same period last year, to 54.7%. However, there is no doubt that many commercial properties such as hotels remain very deeply in debt.

Guardian Solutions, a commercial loan restructuring firm specializing in various segments within the commercial real estate market, has recently helped two such hotels turn matters around despite the struggling economy.

Eventually, the hotel industry will come back, but if a hotel owner is straddled with an untenable balloon payment, or is in default because of the current economic situation, it is imperative that the commercial property owner act aggressively now to keep his property, said Ira J. Friedman COO for Guardian Solutions.

But the overall looming industry debt continues to threaten to undo any recovery the hotel segment is starting to make.

According to research firm Trepp there is about $ 5.6 billion in securitized mortgages tied to hotels coming due this year and next, and about 28% cover properties now estimated to be worth less than their mortgage balances. That makes refinancing those “troubled” loans nearly impossible without the commercial property owners contributing more capital.

Returning to the hotel industry’s boom-time highs may take several years or longer. PKF Consulting Inc., a hotel-industry analysis company, predicts U.S. average rates and REVPAR (revenue per available room) will return to their recent peaks by 2013, but occupancy won’t do so until after 2014. As for property values, HVS, the hotel and leisure research company, forecasts U.S. hotels should regain their 2006 values by 2013.

Some hotel owners may just focus on the first bit of good news they have experienced in two years (slightly improved occupancy rates) but the ones that will survive are the ones that take advantage of this uptick and use it to help restructure their commercial mortgage, and deal with the looming problem sooner rather than later added Friedman.

One group of hotel owners who were not waiting to see if things got better on their own was AllStar Investments, LLC. AllStar was able to renegotiate terms for mortgages for two of their hotel properties with the help of Guardian Solutions.

Guardian Solutions and Mr. Friedman took what appeared to be a hopeless situation for two of our hotels and turned them both around. He negotiated a discounted buy-out of the notes at approximately .60 cents on the dollar, said an AllStar Representative

But the situation is even worse for commercial property owners with hotel loans that are coming due in 2012, many of which were originated when hotel values (commercial real estate values) were much higher than today. Of the $ 5.1 billion in securitized mortgages coming due in 2012, 64.5% currently are underwater, according to Foresight Analytics. Those not generating enough cash to cover their interest payments represent 42.2% of that balance due in 2012.

Friedman added, Guardian Solutions addresses each property we represent individually in accordance with all the issues at hand. Once we are prepared with every piece of relevant information and a realistic game plan, we enter negotiations with the Special Servicer, or in some cases the Master Servicer; our intent is to always secure the best possible terms for the client and address the concerns of the lending institutions.

About Guardian Solutions

Guardian Solutions is the one of nations largest commercial loan restructuring companies and is committed to helping commercial property owners save their properties. The companys knowledgeable mediators are experienced in a variety of disciplines to provide customized restructuring solutions. For more information, visit http://www.GuardianSolutions.org

Contact:

Jamie Sene

Vice President, Marketing

Guardian Solutions

727-442-8833

http://www.GuardianSolutions.org

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Loan Restructuring A Sign Of Hope In A Dismal Commercial Real Estate Industry Forecast

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Clearwater, FL (Vocus) August 9, 2010

Although the U.S. economy appears to be showing preliminary signs of recovery with the stabilization of some large financial institutions, the commercial real estate market continues to be negatively affected by the ongoing decline of home prices, the high rate of commercial loan defaults and an unmoving high unemployment rate. Treasury Secretary Timothy Geithner recently darkened this scenario by warning that unemployment could continue to rise before subsiding.

Jeramie P. Concklin, CEO of Guardian Solutions, a commercial loan restructuring firm based in Florida had this to say, The rate of growth of delinquencies in commercial mortgage-backed securities (CMBS) real estate loans did show some slight signs of moderating in July, but despite that, we are still seeing very high numbers of new distressed commercial mortgages in need of restructuring every week as evidenced by CMBS delinquencies surpassing 60 billion dollars, an increase of 3.11 billion from just the month prior.

A bright spot in this gloomy scenario is surfacing due to the efforts of independent commercial loan restructuring firms such as Guardian Solutions. According to Trepp, a leading provider of CMBS and commercial mortgage data and analytics, a recent trend has emerged that is having a positive effect on CMBS loans due to the increase in loan modifications by lenders. Loan modifications through July of this year already have surpassed those for all of 2008 and 2009 combined. Loan modifications (have) accelerated dramatically in 2010, the Trepp report said. This puts downward pressure on the delinquency number, as troubled loans get resolved and move from the delinquency category.

Based on the successful commercial loan workout results weve been getting for our clients, I can see that the biggest mistake that property owners tend to make is to do delay addressing the issue at the first sign of trouble, or even worse, to try to deal with lenders or special servicers on their own. But that being said, commercial property owners should know that they can take steps to improve their situation by seeking professional help and guidance while the situation is still salvageable; the longer they wait to act, the more difficult their situation becomes, added Concklin.

Commercial property owners who are trying to keep their properties viable are seeking help from firms like Guardian Solutions that specialize exclusively in commercial loan modification. Currently, there are only a handful of specialized firms that hire highly qualified employees, such as accountants, MBAs and real estate professionals to deal specifically with the complexities involved in a restructuring a securitized commercial property.

Guardian Solutions helps commercial real estate owners in distress every day, said Concklin. We are saving all types of commercial properties facing default. But the sooner we get into negotiations, the more options we have available to help. A restructuring plan thats put in place early on usually contains the most favorable terms and achieves the best results. With the dismal forecasts we have for the economy and for the commercial real estate market, its the wise property owners who are taking a look at their assets and preparing now for the eventual market declines.

The technical and legal aspects involved with securing a commercial loan restructure prompts many property owners to ignore their position and grudgingly accept foreclosure rather than save their investment. This can result in more than just losing the property, it can severely damage the borrowers credit and even lead to personal bankruptcy.

About Guardian Solutions

Guardian Solutions is the one of nations largest commercial loan restructuring companies and is committed to helping commercial property owners save their properties. The companys knowledgeable mitigators are experienced in a variety of disciplines to provide customized restructuring solutions. For more information, visit http://www.GuardianSolutions.org

Contact:

Jamie Sene

Vice President, Marketing

Guardian Solutions

727-442-8833

http://www.GuardianSolutions.org

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MBA Commercial Offers Short Sale Solutions for Distressed Commercial Properties to Avoid Foreclosure

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San Diego, CA (PRWEB) August 11, 2010

MBA Commercial, one of San Diegos premiere commercial real estate brokers, has cash buyers available to relieve commercial real estate owners of unserviceable debt. Owners can save their credit by participating in a short sale versus a foreclosure. Lenders net approximately 15-20% more through a short sale than a foreclosure, providing them with incentive to satisfy a larger portion of debt.

According to MBA Commercial CEO Brian Yui, MBA Commercials access to ready buyers and ability to quickly and efficiently complete short sales on behalf of distressed property owners can significantly reduce damage to credit.

As MBA Commercial, Inc. predicted in late 2009, the wave of commercial foreclosures in San Diego is increasing. Researcher Real Capital Analytics Inc. reported that at the end of March 2010, San Diego County had 120 commercial loans in delinquent or default status, with a total value of $ 1.8 billion. According to Bloomberg L.P., in the first quarter of the year, 24.9% of San Diegos commercial mortgage backed securities loans were on watch lists as lenders anticipated near-term delinquencies. In response to this growing need, MBA Commercial has established a short sale unit comprising experienced negotiators and closers dedicated to assisting commercial property holders dispose of their non-performing assets.

The model is similar to residential short sales: For commercial owners carrying debt higher than the current value of their properties, MBA Commercial can provide a cash buyer for fair market value. MBA then negotiates with the lender to release the owners note for the value of the sale, even though the owner owes more than the property is worth. The owner of the building avoids foreclosure and the bank avoids the legal fees and carrying cost associated with a foreclosure. The lender ultimately nets more money and avoids the risk of taking title to the property.

In addition to short sales, MBA Commercial specializes in short payoffs. The company has bridge financing lenders who are able to loan the majority of loan payoff amounts. Bridge financing costs are generally two to five points with interest rates ranging from 12-15% depending upon securitization and assumption of risk. Much like choosing a short sale over foreclosure, short payoffs can save a commercial property owners credit as well reducing or eliminating personal guarantees.

MBA Commercial has long anticipated the downturn in San Diegos commercial property market and is now poised to assist owners in debt while generating profits for investors. Says Yui, These individuals become free of the debt they can no longer service and the properties are restored to profitability, benefiting the local economy. Its a win-win, something we dont often see in the current market.

MBA Commercial, Inc. is a leader in San Diego commercial real estate. MBA Commercial offers a turn-key solution for property management, leasing, sales and financing. Its new Short Sale Division provides bridge loans as well as short sale opportunities for commercial property owners. For further information, please call 888-248-6222.

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